ON THE ROAD; Indian Airline Makes Its Case As a Premier-Class Contender

By JOE SHARKEY

Published: July 31, 2007

BETTER than Singapore, better than Cathay and at least as good as Emirates.'' That was how Naresh Goyal stated his goal that the Indian carrier Jet Airways be rated among the top premier-class service in the world in a few years.

I know. Tens of thousands of you, maybe more, are now stuck in overcrowded airports or wedged into cramped seats on delayed planes as the worst summer in domestic air travel history grinds on.

So maybe you're not in the mood, or in the market, for another look at the phenomenal growth in top-tier international business and first-class air travel. Next week, I'll return to the world of airline misery where most of us spend our time.

But Mr. Goyal does present an interesting case. Most Americans have never heard of Jet Airways, the airline he founded in India 14 years ago as a domestic carrier and began building into an international player. That will change.

Starting Sunday, Jet Airways introduces its first service in the United States, a daily flight between Newark and Mumbai, India (with a stopover at the airline's new hub in Brussels). Jet Airways is operating the flight with one of 10 new Boeing 777-300ER aircraft it ordered as part of a $3.7 billion international fleet expansion that will add 20 777s and Airbus A330s to the fleet. The airline also has orders for 10 new Boeing 787s.

In the United States, much of the attention in the premium markets has been on trans-Atlantic service, as airlines like United and American spruce up business-class cabins to try to compete with top-tier carriers like British Airways and Virgin Atlantic, as well as the start-up all business-class airlines like Eos.

Foreign airlines like Singapore Airlines and Cathay Pacific Airways, meanwhile, have set the standards for premium-class travel between the United States and Asia, and have a major chunk of the international premium-class market in India.

Jet Airways, which is profitable, now flies between 40 cities in India and has expanded to routes between India and London, Sri Lanka, Nepal and Southeast Asia. The airline plans to add service late this year to San Francisco and later to Toronto, Johannesburg and the Persian Gulf -- all big premium-class markets.

India's main carrier, the government-owned Air India, has been reacting to the competitive threat to its long-haul markets. It has expanded its international routes and its fleet with 22 long-haul wide-body aircraft, including 777-200ERs and 747-400s in the last three years, and has ordered 27 Boeing 787s among other new long-haul planes. Air India, which recently upgraded its first-class cabins on long-haul flights, now has 29 flights a week between India and Newark, Kennedy International Airport, Los Angeles and Chicago.

The lure of the Indian market recently prompted Continental Airlines to move up the starting date for its new nonstop service between Newark and Mumbai to Oct. 1 from Oct. 28. Continental has flown between New York and Delhi since 2005.

Continental promotes its BusinessFirst-class service on long-haul routes. But top-tier premium airlines offer more luxurious amenities, including cubicle-like personal spaces and lie-flat beds in business class. Emirates even has first-class cabins with seats enclosed in private compartments with doors.

Mr. Goyal says Jet Airways' new long-haul first-class service will top that, with sliding double doors, an 83-inch lie-flat bed, storage closets, a 23-inch flat-screen video monitor, and a work table that can also seat two for an intimate dinner.

The money is there, he insists.

''In India, there are about 30 million people who would be called 'rich rich' and another 350 million middle class,'' Mr. Goyal said. ''The economy is growing. Many Indians have the money, and they want quality service when they fly internationally -- standards not lower than Singapore and Cathay.''

He said there are 39 million Indian nationals living overseas, many employed in high-paying jobs in banking, technology and medicine. That doesn't include the growing number of affluent Americans and other foreign business travelers who are now flying regularly between the United States and many cities in India.

Fare discounting for premium-class service has begun to break out among some airlines, chiefly United States carriers, on the lucrative trans-Atlantic market, where walk-up business-class fares are typically $8,000 to $9,000. (Walk-up first-class fares between New York and London on British Air are over $12,000.)

Mr. Goyal insists that Jet Airways will be able to prosper without heavy discounting. ''We will be charging fares like British Air, Lufthansa, Emirates, Singapore,'' he said. ''We will not go into that fare war craziness. We don't have a Chapter 11 in India.''